New Law 

Governor Baldacci signed the bill on Monday.

The act bans a practice known as loan flipping, which is when lenders convince borrowers to re-finance at higher fees.

It also restricts how much can be charged in fees, and requires lenders to set up loans that meet the consumer’s ability to pay.

It’s estimated that the Maine economy loses $23,000,000 in equity every year to excessive points, fees, pre-payment penalties and other loan costs as a result of predatory lending practices.